airport management in india

8/19/2019 airport management in india

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A BRIEF ON MANAGEMENT OF AIRPORTS BY THE AIRPORTSAUTHORITY OF INDIA

INTRODUCTION

Effective and integrated public transport system of a country ensure to a stable and

productive society. It would also enable a comparative advantages as well aseconomic efficiencies for the suitable in the user costs. Again an adequate and

reliable infrastructure for transportation and its allied services are the primary

dimensions which contributes to the capacities of a nation for international trade and

have strong and positive platform for foreign direct investment. For this government

has a major contribution in this angle. Even there are some industry, which suffers

from high level of cost in terms of logistic and resource mobilization.

herefore it is the time to address the development of the all modes and means of

transport in an integrated ways which will be lead to the concretization of an

inclusive, sustainable, balanced, profitable and safe transport facility for the socio!

economic benefits. Again availability of a competitive and non!discriminative fare in

transport system will support progressive symbol to the country. A country cannot

develop without a developed transport system. "ood public transport systems are an

essential part of safe, clean and affordable transport for development. he system

should be quic#ly, safely, and securely moves people and goods through the country

and overseas.


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From a social perspective, public transport is the only means of transport for the poor.

ransports related infrastructures facilitate human as well as resources mobilization

in a society.

his tas# of improving the airways of India solely lies in the hands of airports

authority of india and the directorate general of civil aviations. $"%A is the

regulatory body which comes under the ministry of civil aviation and is modeled on

the lines of FAA or the federal aviation authority &united states'.

Airports authority of India &AAI'

Airports Authority of India was formed by merging (ational Airports Authority and

International Airports Authority by an Act of )arliament viz. *The Airports

Authority of Ini! A"t# $%%&' and started to function w.e.f +-+-//0. It manages10 Airports, which includes International Airports and 10 %ivil Enclaves in

different parts of the %ountry. AAI also provides Air raffic 2anagement 3ervices

&A23' over entire Indian Air 3pace and adjoining oceanic areas with ground

installations at all Airports and 10 other locations to ensure safety of Aircraft

operations.

AAI has underta#en "A"A( project in technological collaboration with Indian

3pace and 4esearch 5rganization &I345', where the satellite based system will be

used for navigation. he navigation signals thus received from the ")3 will be

augmented to achieve the navigational requirement of aircrafts.


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AAI is regulated by the 2inistry of %ivil Aviation,"ovt. of India

FUNCTIONS OF THE AAI

. Following are the major functions of the Airports Authority of India6

1. plan, develop, construct and maintain runways, ta7iways, aprons and terminals

and ancillary buildings at the airport

8. establish airports, or assist in the establishment of private airports by rendering

such technical, financial or other assistance which the %entral "overnment

may consider necessary for such purpose

. plan, procure, install and maintain navigational aids, communication

equipment, beacons and ground aids at the airports and at such locations as

may be considered necessary for safe navigation and operation of aircrafts

0. provide air safety services and search and rescue, facilities in co!ordination

with other agencies9

:. establish schools or institutions or centers for the training of its officers and

employees in regard to any matter connected with the purposes of this Act

;. construct residential buildings for its employees establish and maintain hotels,

restaurants and restrooms at or near the airports


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.develop and provide consultancy, construction or management services, and

underta#e operations in India and abroad in relation to airports, air!navigation

services, ground aids and safety services or any facilities thereat9

0. establish and manage heliports and airstrips

:. provide such transport facility as are, in the opinion of the Authority,

necessary to the passengers traveling by air9

;. form one or more companies under the %ompanies Act, /0: or under any

other law relating to companies to further the efficient discharge of the

functions imposed on it by this Act9


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o achieve highest standards safety and quality in air traffic services and airport

management by providing state of art infrastructure for total satisfaction contributing

to the economic growth and prosperity of the nation

(ision of the AAI

o be the world class organization providing leadership in air traffic services and

airport management and ma#ing India a hub in Asia )acific 4egion by 1+:

Sour"e of In"o)e of AAI

AAI collects fee from Airlines for the service rendered in the following heads.

here are two main heads of Income. 5ne is raffic 4evenue and the other is (on

raffic 4evenue.

Tr!ffi" Re*enue +


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Route N!*i,!tion F!"i-ity Ch!r,es .RNFC/ 6 AAI guides route in the air

with the help of state of art 4A$A4-")3 and other automated 3ystem. his

helps the Aircraft to fly in the Indian 3pace without any collision either in the

mid air or while landing and ta#e off. The Ch!r,es !re epen upon the

Dist!n"e !n 0ei,ht of the Air"r!ft "o--e"te fro) Air-ines1

2!nin, Ch!r,es 6 AAI guides the aircrafts-helicopters etc. for safe landing

on the 4=(>A?3 with the help of Instruments li#e "lide )ath &where the

signal emits from the instrument to the aircraft so as to land on the middle

path of the runway with its wings are balancing on either side of the runway

for safe landing. The "h!r,es !re 3!se on the 4ei,ht of the !ir"r!fts

"o--e"te fro) Air-ines1

Ter)in!- N!*i,!tion 2!nin, Ch!r,es .TN2C/+ his charge is applicable

only in the International Airports. International Airports are operating 1 hrs

and Airport is equipped with (ight @anding Equipments. he same is charged

from Airlines.

P!r5in, Ch!r,es+ )ar#ing %harges are based on the size of the aircrafts and

weight. First two and half hours are free ofcharge any par#ing hours more

than the specified is charged from Airlines.

P!ssen,er Ser*i"e Fee .PSF/+ AAI collect )3F charges from the )assenger

for the services provided inside the Airport as well as for the 3ecurity

)rovided. Airlines collects on Air ic#et and pay the same to the AAI.


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User De*e-op)ent Fee6 AAI collect =$% from the )assenger for the

$evelopment of Airport with the state of art equipped with modern facilities.

Airlines collect the charges on Air ic#et and pay the same to AAI.

NON TRAFFIC RE(ENUE+

"!r p!r5in,

!irport entry ti"5et

rest!ur!nt

st!--s

tro--ey "ontr!"t

A*ertise)ent

At)

B!n5

Duty free shops

C!r,o

space to the %oncessionaires to put up their establishment where charges

are collected as per the space occupied plus percentage as royalty on sales

Tr!ffi" Re*enue is 678 of In"o)e !n Non Tr!ffi" Re*enue e!rns 978 of

In"o)e

E:PENDITURE+

. )ay and Allowances amounting to 0 of the Income

1. 4epairs and 2aintenance B amounting to 1+ of the Income

8. Administrative E7penses &ravelling-elephone- 3tores etc.' +


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. 5thers !0

otal urn over &Earnings ' is about ;+++ crore per annum and profit amounting

to 4s.0++ crore.

ACCOUNTS AND AUDIT

Accounting are done through E4) 3A) and designed to meet to retrieve

various data to the various government and 4I see#ers. Accounting is done on the

basis of commercial accounting basis and though not covered by the %ompanies

Act,/0:. AAI have its own Internal Audit 3ystem for preventive chec#s.

Audit is conducted by the %omptroller of Audit "eneral &%A"', a

%onstitutional Cody in three phases and the 4eport is submitted to the 2inistry of

%ivil Aviation and )arliament. Annual 4eport of AAI is tabled in the )arliament and

duly passed in the houses of )arliament.


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4ole of Airport Infrastructure in (ational Economy

Airports being nuclei of economic activity assume a significant role in the

national economy. he quality of airport infrastructure, which is a vital

component of the overall transportation networ#, contributes directly to a

countryDs international competitiveness and the flow of foreign investment.

>hile cargo carried by air in India weighs less than of the total cargo

e7ported, it accounts for 80 of the total value of e7ports. Cetter cargo

handling facilities lead to enhanced levels of importation, especially of

capital goods and high!value items. @i#ewise, /; of the countryDs foreign

tourists arrive by air and tourism is the nationDs second largest foreign

e7change earner.

$1 Airports also represent a countryDs window on the world. )assengers form

their first impressions about a nation from the state of its airports. hey can

be effectively used as symbols of national pride, if we pay sufficient attention

to their quality and maintenance.

91 In many remote, hilly and inaccessible areas of the country, air transport is

the quic#est and sometimes the only mode of travel available. his is

especially true of sensitive regions on the borders with our neighbours in the

west, north and north!east.


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;1 Airports need to be integrated with other modes of transport li#e 4ailways

and ighways, enabling seamless transportation to all parts of the country.


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he raffic forecast for All Indian Airports ta#en together with the base year 1+1!8

is given in the table below6!


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AIR TRAFFIC FORECAST� < A22 INDIAN AIRPORTS TA=EN

TOGETHER

YEAR

AIRCRAFT

MO(EMENTS

.IN >7771/

PASSENGERS

.IN MI22ION/

FRIEGHT

.IN >777 M1T1/

INT>

2 DOM TOTA2

INT>

2

DO

M

TOTA

2

INT>

2

DOM TOTA

2

97$9


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97$?


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0 : / 1: // 0

%onclusions6!

AIRCRAFT MO(EMENTS6

Intern!tion!-+ >ith the base year 1+1!8 the international aircraft movements have

been estimated to grow at the rate of 0.+ initial five years &i.e.1+8! to 1+;!

Do)esti"6 he domestic aircraft movements at all Indian airports put together have

been forecasted to grow at the rate of .+ up to 1+;!< and at the rate of

ne7t five years &i.e, 1+

grow at the rate of 0.8, and /.1 for the periods 1+8!. to 1+;!< and 1+

to 1+11!18 respectively.


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FREIGHT TRAFFIC6

Intern!tion!-6 he international freight traffic has been projected to grow at the rate

of 0 up to the year 1+;!< and Do)esti"6 he domestic freight traffic has been e7pected to grow at the rate of 0

from 1+8! to 1+;!< and at the rate of The tot!- frei,ht tr!ffi" &both international and domestic' has been forecasted to

grow at the rate of 0.+ and 1+11!18 respectively.

his conclusion has been reached after a through research done by the statistical

department of aai. he estimated and the actual traffic is almost accurate with

minimal variance.

the number of aircrafts operated


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>ith increase in the size of the cities there is an increase in the usage of airlines as a

primary source of transportation for various sects of people in india.

Pu3-i" Pri*!te P!rtnership )oe- in Ini! A 3oon or ! 3!ne

It is ! 5no4n f!"t th!t ,o*ern)ents !-- o*er the 4or-# in"-uin, those in the

ri"h "ountries su"h !s the Unite St!tes of A)eri"!# fin it *ery iffi"u-t to t!5e

the entire 3uren of pro*iin, the fu-- r!n,e of ser*i"es to the "itiens1 There !re

)!ny re!sons for this1 So)e of these !re 11!1 Go*ern)ents o not h!*e the fin!n"i!- resour"es to "re!te "!p!"ities in so

i*erse fie-s su"h !s infr!stru"ture# he!-th"!re# eu"!tion# touris) et"1 If they

)o3i-ie resour"es throu,h 3orro4in, fro) !,en"ies -i5e the 0or- B!n5# IMF

et"1 or f-o!t ,o*ern)ent 3ons# pu3-i" 3orro4in, shoots up sh!rp-y resu-tin, in


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)!ny unesir!3-e "onseuen"es for the e"ono)y1

31 E*en if the ,o*ern)ents )!n!,e to spen su"h hu,e !)ounts of )oney# they

ui"5-y fin th!t they -!"5 )!n!,eri!- !n te"hni"!- resour"es to 3ui- the

f!"i-ities in !n effi"ient )!nner1

"1 Aition!--y# if these f!"i-ities !re 3ui-t# o4ne !n )!n!,e 3y the

,o*ern)ent# the nu)3er of ,o*ern)ent e)p-oyees 4i-- so!r1 Th!t 4ou- -e! to

!n o*er


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There "!n 3e )yri! for)s of PPP !,ree)ents1 The ter)s of the !,ree)ent !re

ne,oti!te !t -en,th 3efore the pri*!te p!rtner is offi"i!--y !4!re the "ontr!"t1

The )ore tr!nsp!rent !n )eti"u-ous the pre

is the "h!n"e of su""ess of the proe"t1 2e!*in, !sie the initi!- !4!rs th!t 4ere

,i*en on first "o)e first ser*e 3!sis 4hen the PPP )oe- 4!s introu"e# !-- PPP

"ontr!"ts no4 !re 3ein, one throu,h the open tenerin, pro"ess1 This reu"es

"orruption# 3rin,s in ! "ert!in e,ree of tr!nsp!ren"y !n ,i*es !-- the e-i,i3-e

p!rties ! f!ir "h!n"e to 3i1

The pri*!te p!rtner ,i*es the fu-- or ! )!or p!rt of the proe"t "ost1 He uses the

pu3-i" !ssets -i5e -!n# 4!ter# )iner!-s et"1 for ! f!ir-y -on, perio th!t "!n

stret"h up to ;7 to &7 ye!rs1 No4 the uestion !rises ho4 the pri*!te p!rty

re"o*ers its in*est)ent !-on, 4ith re!son!3-e profits 0h!t h!ppens to the -!n#

3ui-in, et"1 th!t it h!s 3ui-t !n )!n!,e for so -on,

The return on the pri*!te p!rtners in*est)ent "!n p!rt-y "o)e fro) user fees

su"h !s the to-- )oney "o--e"tion in hi,h4!ys1 If this is not !eu!te# the

,o*ern)ent )!y )!5e p!y)ent of fie !)ounts e*ery ye!r -i5e th!t in !n

!nnuity s"he)e1 At the en of the "ontr!"te perio# the pri*!te p!rtner 4i--

nee to return the -!n# 3ui-in, et"1 to the ,o*ern)ent or it )!y ret!in it1 After

!-- these !re sett-e# the uestion of 3en"h


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This 3rin,s into sh!rp fo"us the nee for ei"!te eperts 4ho "!n ,uie the

PPP proe"t fro) its in"eption st!,e ti-- its fu-- -ife "y"-e !n# e*en 3eyon1 These

peop-e )ust 3e )en of inte,rity 4ith "o)peten"e in !re!s -i5e pu3-i" fin!n"e#

!)inistr!tion# en,ineerin, !n -!41 Unfortun!te-y# in Ini!# po-iti"i!ns o not

,i*e ! free h!n to su"h ! ,roup of te"hno"r!ts to ,uie the PPP proe"ts fro)

3e,innin, to the en1

The re"ors of PPP proe"ts in Ini! h!*e 3een ! )ie one1 So)e h!*e

su""eee# so)e h!*e f!-tere on the 4!y to fruition# !n the rest h!*e f!i-e

)iser!3-y1 But the he!rtenin, thin, is 3oth the ,o*ern)ent !n the p-!nners

h!*e re!-ie th!t PPP is the 4!y to pro,ress in ! resour"e


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!1 enh!n"e the "ost of the pu3-i" !ssets 3ein, tr!nsferre to the pri*!te p!rtner

31 enh!n"e the esti)!te inf-o4 of re*enue fro) the users

"1 to 3!r,!in h!r to -o4er the !nnuity type p!y)ent# if !ny su"h thin, is

en*is!,e

1 to )!r5 up the p!r!)eters of perfor)!n"e !fter the proe"t is re!y !n the

pri*!te p!rty 3e,ins to )!n!,e it1

The pri*!te p!rty tries to o the opposite 3e"!use it is not the !-truisti" )oti*e

th!t h!s 3rou,ht hi) to the ne,oti!tin, t!3-e# 3ut his eyes on the profit th!t

4ou- "o)e fro) his in*est)ent in the f!"i-ity1

Pr!,)!tis) !n )!turity fro) 3oth sies !re reuire urin, the "ontr!"t

fin!-i!tion st!,e1 Ho4e*er# "orrupt po-iti"i!ns !n ,reey 3ure!u"r!ts often

"o)e in to 3ro43e!t the pri*!te p!rty to p!rt 4ith s-ush )oney 3efore !4!r of

the "ontr!"t1 Su"h !3o)in!3-e !"tion se*ere-y "ripp-es ! ,oo enterprise1

Indias transport sector is widespread and diverse. It provides, to the needs of .1

billion &1+8' people. In 1++;, the sector contributed more than 0 percent to the

nations "$), with road transportation contributing the lions share. Cut railways and

roads are the dominant means of transport having more than


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in 1++!+1 to .; in 1++!. In 1+, air passenger!#ilometers grew by :.0

while the estimate for 1+1 puts growth at 0.8, reaching 088+ billion passenger

#ilometers or 1.


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In India a Pu3-i" Se"tor Unert!5in, &)3=' is a government!owned corporation.

hese companies are owned by the union "overnment of India, or one of the

many state or territorial governments, or both. he company equity needs to be

majority owned by the government to be a )3=. An alternative title for a )3= is

a Pu3-i" Se"tor Enterprise, where federally owned )3=s are termed Centr!- Pu3-i"

Se"tor Enterprises &%)3Es'

)3= v-s ))) model of management

airport management in india

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